Southern California Edison is considering suing nine public agencies the utility believes may be responsible for some of the damage caused by the monstrous Eaton fire that leveled much of Altadena.
While investigations are ongoing by SCE and the state into the cause of the January blaze, Edison notified the nine agencies that it may file cross-complaints against them in court. Edison is being sued by dozens of victims claiming electrical equipment triggered the fire that destroyed more than 9,000 structures and killed 19 people.
SCE spokesman David Eisenhauer said the company is attempting to preserve its legal options by declaring it might sue other government agencies who may share the blame. The utility would not disclose the names of the public agencies.
The cross-complaint notices, considered by the Edison to be an administrative move, were sent in a response to a legal deadline.
“Many factors contributed to the ignition and spread of the Eaton fire and extent of the damage it caused,” he said.
One candidate could be Los Angeles County, which has been criticized for not sending evacuation alerts to West Altadena until hours after the fire had reached that area. At least 17 deaths occurred in that largely minority area.
The county as well as the cities of Pasadena and Sierra Madre have sued SCE, seeking to get back costs for damages to infrastructure and parks, as well as cleanup, recovery and overtime.
While not admitting liability, SCE has announced a wildfire recovery compensation program this fall for victims impacted by the blaze, who then would forfeit any legal action.
SCE officials have said their internal investigation is focusing on the theory that a long-dormant tower somehow became reenergized and ignited nearby brush. In April, Pedro J. Pizarro, president and CEO of Edison International, the local utility’s parent company, told investors the company likely would suffer significant financial losses if found liable, given that no other potential cause of the blaze had been identified.
If SCE is found liable for damages, it would qualify for help from the $21 billion, California Wildfire Fund, established in 2019 to protect Edison and two other investor-funded utilities from bankruptcy. However, administrators of the fund are concerned that damages from the Eaton fire could deplete the entire pool.
The utilities’ shareholders are responsible for half of the $21 billion and ratepayers will be slowly charged the balance in their monthly bills through 2035.
Meanwhile, SCE is working on the specifics of its compensation program. Details about the total amount of money available in the program and how much each individual would receive will be announced later, Eisenhauer said. The program is expected to operate through 2026.
There will be no application fees, administrative costs or legal fees charged to those who participate, SCE said, and those who have filed a lawsuit against the company may submit an application into the program.
Lawyers for the fire victims are dubious of the compensation program, describing it as an attempt to lure plaintiffs away from the litigation with the promise of “quick cash,” though at a discounted rate.